A NEW APPROACH. to mechanized farming for rural communities in Africa

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1 A NEW APPROACH to mechanized farming for rural communities in Africa

2 Agricultural mechanization is key to unlocking the enormous potential of small-scale farming in Africa. There is an urgent need to empower this group to ensure food security. Tailored, inclusive and integrated approaches to agricultural mechanization can be game-changers in increasing the welfare of farm households and creating positive dynamics and opportunities for economic growth in rural areas. AGCO, a global leader in the design, manufacture and distribution of agricultural equipment, is strongly focused on this smallholder sector. With wide-ranging experience serving African farmers, the company is uniquely positioned to develop innovative solutions to meet the challenge of sustainable and productive farming on the continent. The pioneering Farm in a Box initiative is a world-first and aims to take farm mechanization, together with all its necessary support facilities, deep into previously under-serviced rural communities of Sub-Saharan Africa. INNOVATIVE GAME- CHANGING In Sub-Saharan Africa, humans provide 65% of the power required for land preparation. Capacity-building and the mechanization of agriculture is a priority.

3 ALL THE ESSENTIALS TO BRING POWER TO THE LAND The Farm in a Box (FIAB) is a totally-new approach to ensuring small-scale farmers get access to the machinery they need to transform their operations. In essence, it is highly-localised farm support center which delivers mechanization services to rural communities. Research shows that demand for machinery is high in these remote areas but barriers such as affordability, availability, maintenance/repair services and inadequate farmer skills and training are hindering the uptake of mechanization. Designed to offer a holistic solution, FIAB provides a range of essential farm equipment and tractor driver expertise together with the crucial support mechanisms needed to ensure enduring and productive machinery operation. The objective is to offer for-hire mechanization services to smallholder farmers, enabling them to reap the benefits of agricultural equipment without having to invest in capital assets. Along with the hardware of tractors, implements, spare parts and workshop tools, the package includes training programs and support from a dedicated AGCO Operations Center which provides technical advice and guidance. Importantly, Farm in a Box takes maximum advantage of the latest telemetry and mobile technology to enable remote monitoring of the equipment and the use of mobile apps. This high level of monitoring, support and guidance really sets the concept apart. FIAB is very much an entrepreneurial platform and operates on a franchise model, with franchisees appointed and trained by AGCO. This model helps build the capacity of small-scale enterprises and provides business opportunities for entrepreneurs, contractors and the many speciality agricultural supply stores known as agro-dealers present throughout Africa s rural areas.

4 LOOKING INSIDE THE BOX WHAT S INCLUDED? EQUIPMENT AND SUPPORT SERVICES Farm in a Box offers a tractor and implements to carry out the fundamental land preparation, planting and crop transport plus parts and workshop tools for service and maintenance. The range of equipment can be tailored to an individual community s requirements. Supporting these are training programs for franchise owners covering the operation, maintenance and repair of equipment as well as agronomy, mobile applications and franchise management. To ensure continued support and contact, an AGCO Operations Center oversees the franchise network, offering expertise and guidance, and managing the monitoring and reporting capabilities of the tractors. AGCO works closely with strategic partners in Africa, and their products and services can also be part of the package as additonal options. TRACTOR 45-82hp tractor with 2- or 4-wheel drive SERVICE PARTS Service parts to cover up to 3000 engine hours or three years MATCHED IMPLEMENTS Matched implements - according to requirements but typically including a ripper, disc harrow, trailer and planter WORKSHOP TOOLS Workshop bench and tools, air compressor and generator

5 STOCKING LIST OPERATIONS USER CENTER TRAINING Recommended parts stocking list Administration office linked to the nearest AGCO Distributor and the AGCO Operations User Center Training programs for mechanization, agronomyand franchise management TRACKING APP SUPPORT FURTHER OPTIONS Telemetry tracking and monitoring of tractors from the AGCO Operations User Center Smart-phone App for mechanization and agronomy support Additional options from AGCO s strategic partners including irrigation equipment, seeds, fertilizers, greenhouses etc

6 OUT IN THE FIELD HOW FARM IN A BOX WORKS The first step is the appointment of a franchise partner. AGCO looks for relatively well-established businesses successfully serving the agricultural community within their sphere. The opportunity to offer a mechanization package to their customers would be a natural progression of their business. With the franchise holder in position, a strategy to secure business opportunities for the tractor and implements within the surrounding district is developed to ensure maximum income for the franchisee and maximum utilization of the equipment. Tractor drivers are appointed by the franchisee, while full training is given by AGCO on how to run the franchise, operate and maintain the machinery. The equipment contents of the package are discussed and agreed to suit local conditions. Machinery, parts and workshop equipment physically arrive in the locality in a box - a modified shipping container which can later be employed as an office/workshop. Acting as a localised hub of know-how and practical help, the franchise partner offers hire of tractors, implements and drivers to local farmers and small-holders, enabling them to boost their crop production processes and output. Implementing mechanization in agriculture means that more tasks can be completed at the right time, more efficiently and more productively, saving labor, energy and making best use of resources.

7 THE PILOT PROGRAM ZAMBIA The FIAB concept was tested in a highly-successful pilot project carried out in Zambia with selected agro-dealers. Feedback from their farmer customers was overwhelmingly positive with nearly 90% of respondents satisfied with the quality of mechanization services delivered. More than a year s worth of data was collected and the key findings assisted with the development of the extremely comprehensive and robust support mechanisms available to franchise holders and their customers. Indeed, the regular contact and guidance from AGCO and its national distribution partners built-in to Farm in a Box is an exceptional feature. The facility to monitor tractors remotely from a central command center and measure their usage and performance proved an outstanding benefit during the trial and is seen as a truly transformative element. Harnessing the power of agricultural technology is essential to the long-lasting success of the initiative.

8 ACCESS EMPLOYMENT THE BENEFITS Small-scale farmers gain access to mechanization services to increase efficiency, productivity and crop yields Franchisees expand their businesses and provide new employment opportunities in the locality MECHANIZATION COMMUNITIES INCREASED SALES Overcome barriers to mechanization in rural areas such as affordability and availability of farm machinery, lack of parts and service back-up and skills Local communities benefit from improved economies as a result of the enrichment of the agricultural value chain AGCO increases sales of its products and services and further develops its footprint in Africa

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10 AGCO IN AFRICA PART OF THE FARMING CULTURE AGCO has embedded into the farming culture of Africa and the company s brands and products are trusted and respected. Africa s role is pivotal to feeding the world s growing population and repairing the problem of global food security. Approximately 60% of the world s supply of uncultivated arable land is in Africa. Human muscle remains the most important power source for smallholder farmers. In Sub-Saharan Africa, humans provide 65% of the power required for land preparation. Capacity-building and the mechanization of agriculture are a priority. AGCO is making major investments in infrastructure and people in Africa, and creating key partnerships to help drive agricultural development forward across the full spectrum of farming. The company s approach to serve Africa from Africa is central to its strategy to accelerate and deepen agricultural growth on the continent.

11 THE WORLD IS OUR FARM More people, more food, more farm productivity - AGCO is leveraging its global presence to turn this potential into reality, especially in growing markets. Professional farm machinery is at the heart of boosting agricultural productivity and reducing post-harvest waste. AGCO innovation is focused on making machines and equipment that respond to the world s ever-changing demands for food and fuel. The company s collection of powerful brands is a large part of what makes AGCO unique. Our well-known machinery brands like Challenger, Fendt, GSI, Massey Ferguson and Valtra are at work around the world each and every day.

12 FARM IN A BOX WANT TO KNOW MORE? For more information on AGCO s innovative Farm in a Box initiative, please contact: info.fiab@agcocorp.com